Citadel Securities plans to become a liquidity provider by starting to trade cryptocurrencies on major exchanges like Coinbase and Binance.
Why Citadel is Moving into Crypto
Citadel stayed away from cryptocurrencies for a long time, but changes in the US crypto policy prompted the firm to enter this market. President Donald Trump has been advocating for the US to become the "crypto capital of the planet," which gave Citadel the confidence to invest in this area.
Introducing EDX Markets Crypto Exchange
Following the collapse of FTX, Citadel, Charles Schwab, and Fidelity launched their own cryptocurrency exchange, EDX Markets, which began operations last year. However, only institutional traders could access it. Citadel now plans to deploy its cryptocurrency teams overseas, due to regulatory uncertainties at home.
Wall Street's Reaction to Trump's Crypto Promises
Under Trump's administration, Wall Street banks that previously avoided cryptocurrencies started showing interest in IPOs, convertible bonds, and crypto stock sales. Morgan Stanley and Bank of America are already lining up IPO deals, and Royal Bank of Canada organized a convertible bond sale for Bitcoin mining company Core Scientific in 2024. Regulators remain a critical hurdle to implementing crypto projects in the US.
Citadel Securities and many other major financial players are taking active steps to integrate cryptocurrencies into their operations. With political backing and improved regulatory clarity, the US could become a global hub for cryptocurrency technology.
